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After-sales: how it can affect your global fleet policy

The automobile industry has come a long way since Henry Ford’s launch of the first affordable vehicle that made travel possible for the American middle class. Today the industry is focused around multi-brand global vehicle platforms. I’ll be focusing on current after-sales issues that could impact total cost of ownership, as well as your drivers.

From Modern Times to Just in Time

There’s 100 years between the launch of the Ford Model T and today’s multi-brand vehicle platforms. In 1900 the worldwide production of vehicles was 10.000 units for an approximated total population of 1,7 billion (1 vehicle every 170.000 inhabitants). In 2012 worldwide production had increased to a staggering 60 million with a population of 7 billion (1 vehicle every 116 inhabitants).

In that time we’ve moved from a production oriented philosophy, as captured in Charlie Chaplin’s masterpiece Modern Times , to the Japanese Just in Time approach.

Just in Time in 2013

The Just in Time philosophy has now also been adopted by vehicle manufacturers for their after-sales strategies. Especially now that ever-increasing competition and the so-called Motor Vehicle Block Exemption Regulation (MVBER) have both impacted the margins on new vehicles and lifetime services, the after-sales services landscape is shifting.

In 2012 worldwide production had increased to a staggering 60 million vehicles

Lower total cost of ownership?

The good news for your fleet is that the MVBER regulation has opened up the after-sales market to fair competition. Whereas previously we, as leasing suppliers, were forced to direct drivers to official workshops, now we can profit from the professional network we have developed, to assure quality, service and cost efficiency to our customers.

What’s more: garages are no longer restricted to using original parts and vehicle manufacturers are legally obliged to provide data so that independent garages can service and repair any type of vehicle. But, lower margins have also meant that many OEMs have hit upon hard times. It will be interesting to see if and how this will impact the market and market prices.

Getting the most out of after-purchase vehicle life

What precisely are the effects of the current shifts in the after-sales market on your fleet policy? What are the potential benefits or drawbacks? How will your drivers be affected? I will be following and discussing the latest trends in the after-sales arena, helping you keep a lid on fleet service and repair costs.